This white paper informs Californians of the implications of the possible merger of Pacific Telesis and Southwestern Bell Corporation, under consideration by the California Public Utilities Commission (CPUC). The decision will determine the future direction and character of telecommunications in California. Only a small number of Californians are aware of the pending merger and its significance. This document is a call to civic participation by community and public interest leaders across the state, who should raise their collective and individual voices on these issues. It also seeks to enlarge the public discussion on this decision. One of the paper's major objections to the merger is that it would reduce investments in the state's telecommunications infrastructure, including use of the "Information Superhighway" (see p. 5-6). With the passage of the passage of the Telecommunications Act of 1996, competition, rather than regulation, is the primary means by which consumers will be guaranteed affordable access to both phone service and the information superhighway. Since the passage of the bill, telecommunication companies have been merging and consolidating at an unprecedented rate. This paper provides recommendations on conditions that should be imposed on the merger in order to protect Californians' public interest. (SWC)